The dollar falls by about 1,5% and goes below R$ 3,25.
The behavior of the US dollar was observed after the election of Congressman Rodrigo Maia (DEM-RJ), considered pragmatic and with good relations with interim president Michel Temer, as president of the Chamber of Deputies; for analysts, Maia's victory "represented a new achievement for the interim president."
By Bruno Federowski
SAO PAULO (Reuters) - The dollar fell about 1,5 percent and returned below 3,25 reais on Thursday, after the election of Congressman Rodrigo Maia (DEM-RJ), considered pragmatic and with good relations with interim president Michel Temer, as president of the Chamber of Deputies.
At 10:21 AM, the dollar was down 1,35 percent, at 3,2304 reais for sale, after reaching a low of 3,2262 reais during the session. The dollar futures contract was down about 1,1 percent this morning.
"Maia represented a new achievement for the interim president, as he tends to 'play side-by-side' with him regarding the approval of measures relevant to fiscal adjustment in Congress," wrote analysts from the brokerage firm H.Commcor in a note to clients.
The election of Maia as successor to the ousted congressman Eduardo Cunha (PMDB-RJ) puts an end to the instability caused in the House's work by the back-and-forth during the interim period of first vice-president Waldir Maranhão (PP-MA).
The vote was well received by the market, which had expressed concern about the growing candidacy of Marcelo Castro (PMDB-PI). Castro positioned himself against the impeachment of the ousted president Dilma Rousseff, alarming investors who blame the policies adopted in her first term for deepening the economic crisis in Brazil.
The positive mood regarding the political landscape overshadowed the cautious tone seen abroad after the Bank of England surprised many traders by not announcing any economic stimulus this morning. Even so, the British central bank indicated that it expects to adopt some measure within three weeks.
"It was a disappointment for many, but the signal (of more stimulus in the short term) is a small consolation," said B&T brokerage trader Marcos Trabbold.
The Brazilian Central Bank's actions were also insufficient to stem the fall of the US dollar. This morning, the monetary authority again sold 10 reverse swaps, equivalent to the future purchase of dollars, repeating the operation it carried out in all trading sessions this month except one.
(By Bruno Federowski)